March 28, 2024

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Latin American mergers and acquisitions lost 42% of their value in January |  America

Latin American mergers and acquisitions lost 42% of their value in January | America

The transaction market in Latin America recorded a total of 234 mergers and acquisitions in January, between the announced and the closing, for a total amount of 5,565 million USD, which represents, compared to January 2021, an increase of 22% in the number of transactions, but a decrease of 42% in amount, according to a report from the transaction tracking log and data website.

Brazil leads the ranking of the most active countries in the region with 176 operations (+61%), which, however, saw a 49% drop in mobilized capital to 4,092 million USD. Followed by Mexico, with 20 operations (+5%) and $447 million in US dollars, more than double what it was in the previous year.

Argentina improved in the rankings, with 17 operations (-6%), and US$451 million (+61%). Chile, for its part, fell one place, with 13 operations (-55%), and a 98% decrease in mobilized capital, amounting to 43 million US dollars.

For its part, Colombia reduced its activity and recorded 11 transactions (-48%), but increased its value by 55% to 1,007 million USD. Peru is last, maintaining the trend of seven operations, but devaluing it by 99% to $10 million.

With regard to the activity of Latin companies abroad in the region, it was mainly concentrated in Europe and North America, where six operations were carried out in each of the regions. For their part, the companies that carried out the most strategic operations in Latin America were from North America and Europe, with 44 and 27 operations, respectively.

Private Equity, Venture Capital and Asset Acquisition

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In January 2022, a total of 13 transactions of private equity or private capital amounting to $280 million were registered, which is a downward trend in both the number of operations (-38%) and their volume (-91%), compared to the same period of the year. Previous.

For its part, the venture capital or venture capital segment acquired a total of 71 operations in the first month of the year for a total amount of $1,171 million, which means a positive variance of 25% in the number of operations and 29% in their value, on an annual basis.

In the “asset acquisition” or asset acquisition segment, in January, 17 transactions valued at $1,589 million were recorded, 29% less in the number of operations and 40% less in the amount of these operations, compared to the same period in 2021 .

Selling fiber optics to Telefónica in Colombia

Finally, the report chose Telefónica’s sale of fiber-optic assets as the standout transaction for the month.

The operation, valued at US$500 million, was provided legal advice by Latham & Watkins. Brigard Urrutia Quatrecas. Simpson Thacher, Bartlett and Gomez Pinzon. On the financial side, the deal was notified by Scotiabank and Bank Street.